North Carolina Down Payment Assistance Programs

Payments Gateway - These systems will be the deposit Assistance Program and also the Mortgage Credit Certificate.

Also you buy a home between January 1, 2009 and December 1, 2009 and if you qualify for one of the programs, you can ALSO qualify for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who is a first-time Home Buyer? There is a First Time Home Buyer someone who has not owned a home within the past three years. It is the exact same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with low and moderate incomes. The MCC takes this a step further.

You can claim 20% of the interest you pay on your mortgage as a credit on your own federal income taxes, if you qualify for the MCC. You can save up to $2,000 on your taxes.

You may find a way to join this with the $8,000 tax credit, should you qualify for the MCC, for 2009. This might reduce a buyer's tax liability by $10,000.

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and any other individual anticipated to live in the home who's 18 years of age or older.”

The income and house price limitations that apply in Durham Orange and Chatham Counties are listed below.

MCC Income Limits 1 Person $61,500 2 Individuals $61,500 3 Persons $70,500 4 Men $70,500

MCC Sales Price Limits New House $220,000 Existing Home $210,000

Home buyers that need help with their down payment and closing costs may be able to get down payment assistance - or, in other words, interest-free, deferred second mortgages up to $8,000. The buyer just needs to pay and the load would pay as much as .

This program has more rigorous income limitations than the MCC plan summarized above. Like the MCC program, it could be used along with the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The deposit assistance, however, can't be applied in conjunction with the MCC. This is an either or situation.

House price limits that apply in Orange, Durham and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limitations

1 Person $39,950 2 Individuals $45,650 3 Persons $51,350 4 Men $57,050

Down Payment Assistance Sales Price Limits New Home $210,000 Existing House $210,000